Fed-Ex Pay-cut

Discussion in 'FedEx' started by KeithT1967, Dec 21, 2008.

  1. KeithT1967

    KeithT1967 Road Train Member

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    http://www.reuters.com/article/newsOne/idUSTRE4BI5ZZ20081219

    FedEx delivers ominous new twist with benefit cuts

    Fri Dec 19, 2008 4:26pm EST




    [​IMG] 19 Dec 2008





    By James B. Kelleher - Analysis
    CHICAGO (Reuters) - Federal Express Corp's decision this week to force its salaried workers to take at least a 5 percent pay cut and to suspend its 401(k) match isn't just bad news for the shipping giant's employees.
    Experts say the takebacks are an ominous sign of things to come at many other U.S. companies as businesses -- even healthy ones like FedEx -- adopt defensive corporate crouches in response to the worst economic downturn in decades.




    I'm not a fan of unions by any means but its crap like what Fed-Ex is pulling that creates a need for unions. I wonder if "salaried workers" includes upper level Execs. I'm doubting Fed-Ex is hurting at all and suspect they are simply using this economy as a cover.
     
  2. Mooney

    Mooney Road Train Member

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    Rather than slash jobs, FedEx Corp. announced Thursday it would institute a hiring freeze and cut salaries, including that of CEO Fred Smith.
    Beginning in 2009, Smith will scale back his salary by 20 percent. Other senior executives will receive a 7.5-10 percent salary cut. U.S. salaried employees will receive a 5 percent cut.
    The cuts will help FedEx save more than $200 million in the remainder of fiscal year 2009 and $600 million more in fiscal 2010, helping offset what the company projects as “weak demand” for the upcoming year. The shipping giant did add a caveat to Thursday's announcement: Each of FedEx's operating companies "is evaluating other measures should business conditions further deteriorate," according to a company release.
     
  3. KeithT1967

    KeithT1967 Road Train Member

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    Excuse me while I remove my keyboard from my mouth. ;)
     
  4. P3anu7

    P3anu7 Bobtail Member

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    Fed Ex Freight East cut 280 employees (mostly drivers) effective the 19th of December. They did that the week before they announced the pay cuts. We can only hope Fred is able to keep his lights and heat on through the winter.....
     
  5. davan2004

    davan2004 Light Load Member

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    Whoa! If the company i work for (swift) starts to give pay cuts I would quick trucking all together.
     
  6. aladdin sane

    aladdin sane Medium Load Member

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    Working for Swift is humiliation enough. I'm sure you don't need a pay cut on top of that to further erode your self image.
     
  7. xxpigxx

    xxpigxx Light Load Member

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    someone has an inflated nether-regions member for Swift
     
  8. aladdin sane

    aladdin sane Medium Load Member

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    HUH???????
     
  9. Lilbit

    Lilbit Road Train Member

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    Come on man! I got that one! Took me a minute though.
     
  10. P3anu7

    P3anu7 Bobtail Member

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    yeah i gotta admit it took me a minute but that was funny as hell